Two Superpowers Are Quietly Loading Up
China – the world’s largest Oil importer is capitalizing on every dip. Last month, China’s Crude Oil purchases rose to 12.11 million barrels a day – a 5% increase from the same month a year ago. This marks the third consecutive month of rising imports, driven by a rebound in domestic travel and industrial production. China has also added an estimated 250 million barrels to its strategic reserves over the past 12 months, according to proprietary data tracked by GSC Commodity Intelligence.
In the United States, the summer driving season – historically a strong demand driver is around the corner. This year’s driving season is expected to push Gasoline demand close to 9.4 million bpd. Meanwhile, jet fuel consumption is also accelerating, with passenger air traffic rising 8.9% year-on-year in April.
These forces are quietly aligning behind the scenes – positioning the market for a major shift. And that shift could be triggered by a single buyer: President Trump’s U.S government.
Trump’s Strategic Buying Could Shift The Floor
In his January 2025 inaugural address, President Trump pledged to refill the Strategic Petroleum Reserve (SPR) “right to the top”, after it fell to 346.8 million barrels – it’s lowest since 1983.
Now with the SPR sitting at its lowest level in over 40-years and Oil prices back at multi-year lows – Trump has a unique opportunity to buy cheap Oil, restore energy security and support domestic producers – all while anchoring a price floor.
Simultaneously, Trump’s broader economic agenda, includes bold plans to transform America into a “Massive Manufacturing Hub”.
